Freedman's Savings Bank
FREEDMAN'S SAVINGS BANK
FREEDMAN'S SAVINGS BANK, a bank for African Americans, was incorporated under the Freedman's Bank Act of 3 March 1865 to provide a means of savings for former black slaves and black servicemen. Headquarters were in the District of Columbia, with branches in various states. The bank had many depositors, but the depression in 1873 and mismanagement led to the bank's failure on 29 June 1874. Some of the bank's depositors received a portion of the value of their accounts from Congress, but the bank's failure led many in the African American community to distrust the American banking system.
Osthaus, Carl R. Freedmen, Philanthropy, and Fraud: A History of the Freedman's Savings Bank. Urbana: University of Illinois Press, 1976.
HallieFarmer/a. r.; f. b.